4 Reasons You Might Need a Bonded Title

Short on time? Check out our Bonded Title FAQ Page.

Not sure if you need a bonded title? Check out this awesome infographic.

What is A Bonded Title?

A bonded title (also know as a lost title bond) is a certificate verifying a person’s ownership of a motor vehicle. It serves as proof of ownership that allows the owner to proceed with transactions like:

  • Buying insurance
  • Registering the vehicle
  • Selling the vehicle

You have to prove ownership to register and insure the car you buy.

Requirements for Getting a Bonded Title:

The process to get a bonded title will vary depending on what state you are in, but generally the process is similar whatever state you are in. Bonded titles are normally a last resort; your state’s DMV will want you to make every effort to obtain the original title before applying for a bonded title.

To get a bonded title, you must have bought the vehicle or received it as a gift. In other words, you can’t apply for a bonded title for an abandoned or stolen vehicle.

Specifics vary from state to state, but generally, obtaining a bonded title involves filling out forms from your state’s Department of Motor Vehicles (DMV) and taking them along with supporting evidence (like a bill of sale, canceled check, or invoice) and your photo ID to a DMV service center. If your documents are approved, the DMV will issue a letter stating the amount of a title bond you need to purchase based on a determined value of the vehicle.

Next, you take your letter from the DMV to an agency licensed to sell surety bonds in your state and purchase a title bond. Within 30 days of buying your title bond, you take it, along with your DMV letter to a DMV service center, along with a completed application for a certificate of title (and possibly other documents required by your state) to apply for your bonded title.

Need a bonded title, but are short on time? Get free quotes online through Surety Solutions. We can get you approved for your title bond instantly.

What Are Bonded Titles Used For?

Bonded titles can be used to determine ownership if there is a dispute about who owns a vehicle, and can be used to prove ownership when registering a vehicle or buying car insurance. Title bonds may also be used in situations where an owner failed to deliver the title to a car after a dispute, or in the event of a used car scam (such as sales of cars with fraudulent titles).

Following are 4 of the more common reasons you might need a bonded title.

1. You Bought a Vehicle and Didn’t Receive a Title or Bill of Sale

If you purchased a vehicle, or were given a vehicle as a gift and have neither a title nor a bill of sale, you will need to prove somehow that the vehicle you have in your possession is in fact yours. Valid proof may include a receipt of the sale or a cancelled check. If you do not have a receipt or canceled check, you may be able to use a notarized statement explaining how you got the vehicle.

Obtaining proof of ownership when you don’t have a car title starts at your state’s Department of Motor Vehicles.

2. You Purchased a Vehicle and Only Received a Bill of Sale

If you bought or were given a vehicle and only have a bill of sale, you can use that bill of sale to obtain a bonded title so you can prove ownership. Proof of ownership is necessary to be able to register a car or insure it, and if you can’t get an actual title, the bonded title will serve that purpose.

3. You Bought a Vehicle and Received an Improperly Assigned Title

Suppose you purchased a car from someone and had it shipped to you, but the title the seller sent was improperly assigned. In this case, you may be able to use your bill of sale or receipt to show ownership and apply for a title bond.

4. You Bought a Vehicle, Received, and Lost the Title

Perhaps you bought a vehicle and were handed the title, but lost it before applying for a title in your name. You should be able to take your bill of sale, receipt, or a notarized statement and apply for a bonded title that you can then use as proof of ownership.

Do you need a Lost Title Bond?

Surety Solutions, LLC sells title bonds through a large network of providers so you can compare costs before buying, and has instant underwriting technology to make the purchase process as efficient as possible. With a title bond from Surety Solutions, LLC, you can complete your state’s DMV requirements and obtain a bonded title so you can register and insure your car with a minimum of waiting. We can take care of you today!

Related Links:

Bonded Titles FAQ


Originally published at blog.suretysolutionsllc.com.